“I believe there is great unrealized value in MoviePass and we want to rebuild and make sure it reaches its full potential,” Farnsworth stated. “I have always believed in the business model and the brand Mitch Lowe and I built at MoviePass. There’s tremendous appetite for movie theater ticket subscription.”
The phrases of the deal weren’t disclosed, but it would come with MoviePass, Moviefone, the film itemizing and knowledge service; MoviePass Films, a movie manufacturing firm; and MoviePass Ventures, a movie co-acquisition firm. To keep away from any battle of curiosity, Farnsworth has stepped down from his roles as chairman and chief govt of Helios and Matheson and from his place on the board of administrators. The acquisition should be accepted by the board, and if it is, Farnsworth says he hopes to shut the deal as quickly as potential.
MoviePass as soon as claimed three million subscribers, but as of this previous April, that quantity had dropped to 225,000. It experimented with a number of pricing fashions, borrowed cash to keep away from chapter, quickly shut down its app and leaked customers’ bank card numbers. “Despite the reams of pulp fiction that have been written about MoviePass, we know what went wrong along the way and the many things that went right,” Farnsworth stated. “After all, we built the fastest growing subscription business in the history of merchandising and numerous copycats are out there now trying to capitalize on our model in the theater industry.”